Monday, March 11, 2013

Excessive complexity renders bank reform proposals useless.

I’ve been pointing out on this blog for some time that sundry bank reform proposals to date are of questionable use because of their complexity (e.g. Vickers, Basel III and Dodd-Frank).
So it’s good to see two Dallas Fed economists reaching the same conclusion in the Wall Street Journal. As they say, “The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act was a well-intentioned response to the problem. Its stated promise—to end "too big to fail"—rings hollow. With a law that runs 849 pages and more than 9,000 pages of regulations written so far to implement it.”

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